“Many people short themselves and don't know it,” said Carlos V. Freyre, managing director of MySmartClaims.com, referring to the fact that homeowners may accept settlement amounts that are inappropriate because of lack of resources.

“Traditionally, homeowners have been somewhat limited in their options in negotiating claims,” Freyre added. “They could either accept the carrier's estimate or hire a third party, such as a public adjuster, which typically charges between 10 and 40 percent of the recovered amount.” However, Florida-based MySmartClaims.com is offering their estimation tool to help homeowners determine if the insurer's price is right, without seeking outside assistance. The goal? To combat perceived low-ball offers on claims.

The tool does not require special training to employ successfully. In fact, the average procedure takes about one hour. Each homeowner need only have Internet access and the information provided by the insurance company to answer a set of questions. The service then analyzes the estimate; calculates the cost of restoring the property, which is based on industry-standard expenses for time and materials categorized by zip code anywhere in the U.S; and provides forms that consumers can then use to recover more money.

According to the company, this service is especially useful following damage claims for events such as kitchen fires, broken pipes, or strong winds, and for those reporting losses after hurricanes and other catastrophic events.

But what do some independent adjusters think about it? James F. Lakes, president/CEO, MWD Catastrophe Services, Inc., is quick to mention that most insurers don't require proof-of-loss statements anyway. Lakes also pointed out that policyholders already have several options when disputing insurer settlement amounts, including contacting the insurance commission or opting for the appraisal process.

Kevin Hromas, an executive general adjuster from Houston, Texas, relays the concern that the blanket approach afforded by the software may not be the right option for everyone, depending on policy coverage limits. Both Hromas and Lakes mentioned the significant margin for human error, as homeowners would be inputting materials and measurements instead of a certified professional.

There is a fee associated with the service. However, MySmartClaims.com guarantees that users will recover more than the cost of its service or the fee is refunded. Even though the fee for the service is said to be less than the cost of contracting a public adjuster, insureds may not readily see the value in absorbing the cost, said Doug Jackson, president, Southwest Claims Service, Inc.

“Sure, insureds might consider the software, but I doubt that most would spend the money, especially after just suffering a loss,” Jackson said. “Although I could see a public adjuster or plaintiff's attorney trying to use something like this to bolster a case that the insured was being underpaid. It would be a hard sell, given the complexities and unique character of each claim.

“Just like estimating programs, software applications are simply a tool to be used to develop a fair adjustment and should not to be considered the absolute last word as to the amount of the loss,” he concluded.

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